Goldman Warns AI Disruption Looming Over Software Stocks: CRM, WDAY, TRI, SAP, NOW at Risk

Goldman Sachs warns the ongoing selloff in software stocks may be the prelude to broader earnings disruption from AI, citing historical parallels with the internet-driven decline of newspapers (average -95% from 2002-2009). Nearly every major software company is underperforming the Nasdaq Composite, with Oracle down 27% and Figma off 41% this year. The sector tends to outperform once it bottoms, but near-term earnings may not be enough to avert continued downside as new AI releases amplify bearish narratives. Buy-the-dip activity remains absent, and catalysts to reverse sentiment are unclear.